A Look at the Vital Signs of the 2016 Holiday Shopping Season

The 2016 holiday season set records for online sales, though mid-priced brick-and-mortar stores suffered, with several companies announcing closures at the end of the year. Photo from Pixabay.

The 2016 holiday shopping season was a success for American retailers, yet there was a large disparity between online sales, which surged 15% above last year’s figure, and traditional stores, which saw stagnant or declining traffic in many cases.

Yet the retail world is changing as e-commerce grows in popularity. Many of the winners of this season were online retailers, such as Amazon.com, which saw their profits soar to record highs. Conversely, a number of longtime icons, including Macy’s, Kmart and Sears, announced major layoffs and store closings for the end of 2016.

Online Sales Surge

Cyber Monday has been with us for more than a decade, but this year’s entire shopping season had an online emphasis. While final figures might be a long time in coming, it is already obvious that Amazon experienced its best season ever, with more than 1 billion items shipped worldwide. The artificial intelligence voice-controlled Amazon Echo assistant was a major factor powering the company’s surge.

With online sales rising and an increasingly value-conscious consumer, department stores must reinvent themselves for the 21st century. Photo from Pixabay.

The season was good news for many, but it was bad news for others. Such rapid overall growth in sales made it clear who is falling behind and who is excelling. Sales slowed down at traditional malls, which is bad news for those with careers in traditional retail. Still, there were some brick-and-mortar bright spots, with Home Depot and TJX performing well. But mid-range retailers, stuck between value and quality, which includes many top department stores, generally saw a dour season.